Jim McMahon faces lawsuit from failed bank loans

Posted by Mike Florio on April 9, 2012, 4:20 PM EDT

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Former quarterback Jim McMahon recently sued the NFL for concussions. And now he’s being sued, for something entirely different.

According to the Chicago Tribune, McMahon was named in a suit filed last month by the Federal Deposit Insurance Corporation. Through the action, the FDIC hopes to recover $104 million in losses arising from 17 failed bank loans.

McMahon, who was a member of the board of directors at Broadway Bank, allegedly approved a $28 million loan that created a $19 million loss for the bank. McMahon also allegedly missed critical board meetings, repeatedly.

The biggest question raised by the lawsuit is this: Why in the hell would anyone make Jim McMahon a bank director?

I’m from that city and I think that our fans aren’t too sycophantic for the Bears to the point where our history is apparently better than the Raiders. At least they threw the ball!!!! They had George Blanda in his better years; we had him when he was interception-prone!!!!

Many years ago I was employed as a Bank Examiner for the FDIC. It’s outrageous who is allowed to sit on Boards of Directors. So many members had no idea as to the daily operations of a bank nor any concept of loan or investment portfolios. Many served just for the fee or the notoriety. I’m sure that Jim McMahon fit that category.

Shouldn’t the dolt that thought hiring a NFL QB to approve bank loans take some responsibility here? Honestly, who couldn’t see a train wreck coming if you give an ex-player carte blanche to approve bank loans? Because nothing prepares you to judge who can pay the bank back and who can’t like playing in the NFL. That’s what the league is known for, right?

Maybe Jimmy Mac will blame the NFL for this too. I don’t know who’s dumber, McMahon or the people that put him on the board of directors. This guy was a scum bag when he played and he’s a scum bag now. This couldn’t have happened to a nicer guy.

The biggest question raised by the lawsuit is this: Why in the hell would anyone make Jim McMahon a bank director?
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True… probably not the best decision. But, a big part of a director’s responsibilities is to use your connections to bring business into a bank. I’d say a nationally known, Super-Bowl winning QB would have quite a network to bring new customers to the bank. And I am sure the other members on that Board were approving the same loans. It’s not like McMahon was making all these decisions himself.